Expenses on the dissolution of a partnership firm are called :

Realisation Expenses

The correct answer is option 3- Realisation Expenses.

Realisation Expenses are the expenses incurred on the dissolution of a firm. These expenses belong to the firm and hence, they should be paid by the firm. However, sometimes these expenses are paid by the firm on behalf of a partner. In such cases, the Concerned Partner’s Capital/Current Account is debited.